The US is headed for a roaring economic boom, thanks to AI, robots, quantum computers, market veteran Ed Yardeni says
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- Ed Yardeni thinks the US is headed for the "roaring 2020s," a decade of robust economic growth.
- The market veteran pointed to new technologies like AI, robots, and quantum computers.
- Cooling inflation will also help companies improve profit margins, he added.
The US is in for a decade of robust economic growth, thanks to artificial intelligence, automation, robots, and quantum computers, according to market veteran Ed Yardeni.
"I think this is going to turn out to be something like the roaring 2020s," the Yardeni Research president said in an interview with Bloomberg TV on Monday.
He acknowledged that a similar prediction he made a few years ago appeared "delusional" at the time, but it now looks like a "reasonable" outcome.
"I think that by the end of the decade we'll look back on it and say, it started out awful, but it ended up awfully good," Yardeni said.
Earlier in July, he predicted the S&P 500 could soar as high as 5,400 by the end of 2024, representing a 18% jump from the benchmark's index's current levels.
Though stocks are going through a "mini-recession" in corporate earnings, that's set to improve as inflation continues to cool and boosts profit margins, Yardeni said on Monday.
He has made the case previously for a "Roaring 2020s" in the stock market, and suggested ChatGPT, the buzzy AI bot that can write sophisticated lines of prose, may be the catalyst.
Investors have already begun to bet on that future, with the excitement for generative AI sparking a huge rally among tech stocks through the first half of the year.
But not all on Wall Street are as optimistic. Also on Monday, JPMorgan's Marko Kolanovic remained bearish on the stock market, warning in a note that the hype around AI is brewing a bubble.
In fact, tech stocks suffered a $2 billion outflow in mid-June, Bank of America data shows – a sign that a "baby bubble" in the AI sector could be beginning to deflate, strategists suggested.